You May Have Missed It – Workers’ Compensation Insurance Premiums Are Rising in California

4 Jun

As noted recently by Marc J. Beaulieu, CPCU, ARM, Senior Vice President, Preferred Employers Insurance Co., “workers’ compensation insurance companies have begun increasing rates all over California.

The state’s business owners should expect many insurers to pass on rate increases effective July 1, 2012. Some businesses will see minor rate adjustments in the 2%-5% range while others could get clobbered with 15% or more.” 

CA Insurance Commissioner Jones approved a 8.26% increase in “pure premium” rate for California workers’ compensation insurance as of July 1, 2012 policies.  This increase is on top of a January 1, 2012 rate of $2.30 which was first increase approved by any California Insurance Commissioner since January 1, 2009.  

The California regulatory process for workers’ compensation pure premiums was so far out of touch with reality that the Insurance Commissioner asked that rate filings for 2012 ignore past decisions of his own agency, and instead “focus upon current actions of workers’ compensation insurers in the marketplace rather than the past advisory rate levels.”

Marc Beaulieu offers these tips to reduce your workers’ compensation insurance costs: 

  1. Ask your agent about available group discounts
  2. Make sure your payroll figures are accurate
  3. Double-check that your business is properly classified
  4. Verify that doctors in the Medical Provider Network are directly contracted with the company and not with some distant third party
  5. Have your employee “Back to Work” plans ready to go should you ever need them

You can read all of Marc’s article at: www.thebosstoolbox.com/2012/05/insurance-premiums-are-on-rise-in.html

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